Net revenues were $158.7 million as compared to net revenues of $191.3 million reported for the first quarter last fiscal year. Net income for the first fiscal quarter was $4.2 million or $0.04 per share, compared with net income of $20.7 million, or $0.21 per share, reported for the same period last year.

Robert A. Kotick, Chairman and CEO of Activision, stated, "We were pleased that our results exceeded our previously provided outlook. During the quarter, we continued to strengthen our business and financial position. With $390 million in cash and short-term investments, one of the industry's strongest balance sheets and a strong product development slate, we have entered fiscal year 2004 with a number of competitive advantages."

Business Highlights

Activision's results were driven by strong global consumer response to its products across all platforms. During the quarter, the company released X2 Wolverine's Revenge™ for the PlayStation® 2 computer entertainment system, Xbox®video game system, Nintendo® GameCube™, Nintendo Game Boy® Advance and the PC, id Software's Return to Castle Wolfenstein™ and Wakeboarding Unleashed™ for the PlayStation 2 computer entertainment system and Xbox video game system, Soldier of Fortune II: Double Helix™ for the Xbox video game system, Medieval Total War: Viking Invasion™ for the PC and Lost Kingdoms 2™ for the Nintendo GameCube. Additionally, Tenchu: Wrath of Heaven™ and Spider-Man™ continued to experience strong sales around the world.

Other highlights from the quarter include:

LucasArts announced its intent to enter into a pan-European publishing and distribution agreement with Activision. This latest agreement strengthens the partnership between the two companies and expands Activision's distribution role for LucasArts' video game console and PC products in Europe.

Activision signed an exclusive, long-term agreement to publish games developed by Spark Unlimited, a newly formed studio comprised of 28 of the individuals who developed titles in the Medal of Honor™ console and PC series, including several of the production leads. Spark will develop three console-based games for Activision that will be released on multiple platforms. The first title, which will be released under the Call of Duty™ brand, will be a first-person action game that is slated for release in 2004.

id Software™ and Activision confirmed that id Software's DOOM 3™, one of the most anticipated games, is headed to the Xbox video game system from Microsoft.

On June 6, 2003, Activision's three-for-two stock split, which was announced on May 5, 2003, became effective.

Activision provided its outlook for the remainder of fiscal 2004. For the second quarter, the company expects revenues of $100 million and a loss per share of $0.13. For the third quarter, it expects revenues of $360 million and a earning per share of $0.58. For the fourth quarter, Activision expects revenues of $131 million and loss per share of $0.03. For the full fiscal year, the company expects revenues of $750 million and earnings per share of $0.47.

Looking ahead, the company is excited by the upcoming holiday season. Releases this fall include Tony Hawk's Underground™ and Disney's Extreme Skate Adventure™ for the PlayStation 2 computer entertainment system, Xbox video game system, Nintendo Gamecube and Game Boy Advance; True Crime: Streets of L.A™. for the PlayStation 2 computer entertainment system, Xbox video game system and Nintendo GameCube; Cabela's Deer Hunt™ for the PlayStation 2 computer entertainment system and Xbox video game system; and LucasArts Entertainment's Star Wars® Jedi Knight: Jedi Academy™, Call of Duty and Empires: Dawn of the Modern World™ for the PC.

Headquartered in Santa Monica, California, Activision, Inc. is a leading worldwide developer, publisher and distributor of interactive entertainment and leisure products. Founded in 1979, Activision posted net revenues of $864 million for the fiscal year ended March 31, 2003.

Activision maintains operations in the U.S., Canada, the United Kingdom, France, Germany, Japan, Australia, Scandinavia and the Netherlands. More information about Activision and its products can be found on the company's World Wide Web site, which is located at www.activision.com.

Note: The statements made in this press release that are not historical facts are forward looking statements. Although the company believes that its plans, intentions and expectations reflected in such forward-looking statements are reasonable, a number of important factors could cause our actual future results to differ materially from those expressed in any such forward-looking statements.

These important factors and other factors that potentially could affect the company's financial results are described in our filings with the Securities and Exchange Commission, including the company's most recent Annual Report on Form 10 K and Quarterly Reports on Form 10-Q.

Our Elite RosterOf Legendary Titles

As a leading entertainment franchise globally, Call of Duty delivers cinematic intensity, big moments and stunning visuals. Call of Duty games feature an award-winning multiplayer experience, a gripping campaign on par with a Hollywood blockbuster, and an engaging cooperative mode. The critically-acclaimed franchise continues to set the bar in the FPS genre and is enjoyed by millions and millions of gamers every year.

Directed by Hidetaka Miyazaki, Sekiro: Shadows Die Twice is a third-person, action-adventure game with RPG elements. The single-player game puts players in the protagonist role of a hard-hearted warrior whose mission is to rescue his master, a young lord, and exact revenge on his arch nemesis. As “Sekiro,” or the “one-armed wolf,” players will discover the many ways to strategically approach combat and engage enemies.

Activision and Vicarious Visions are honoring the heritage of Crash throughout the trilogy in a variety of ways. With more than 100 levels to explore, the Crash Bandicoot N. Sane Trilogy fully remastered game offers brand-new lighting, animations, textures, models and recreated cinematics—all in dazzling “N. Hanced Fur-K.” The game’s soundtrack is packed with all the didgeridoos, xylophones and thumpin’ bass lines you can handle, as well as newly recorded dialogue from some of the familiar voice actors who appear in the original Crash Bandicoot games, including Jess Harnell, Lex Lang and Debi Derryberry, among others.

In Blizzard Entertainment's award-winning Diablo® action-role-playing games, players take on the roles of brave heroes who are drawn into an epic conflict between the angels of the High Heavens and the demons of the Burning Hells over the fate of the gothic fantasy world of Sanctuary.

Noted for their epic space-opera story lines and supremely balanced multiplayer gameplay, Blizzard Entertainment's StarCraft® real-time strategy games have been a longstanding fixture on players' and critics' "Best of" lists and a staple of professional eSports for as long as the category has existed.

Candy Crush Saga? is a switcher game in which players match candies in combinations of three or more to win points and defeat obstacles. Players progress through a colorful candy world with over 1000 levels, each offering a different puzzle challenge. Candy Crush Saga has two sister titles ? Candy Crush Soda Saga? and Candy Crush Jelly Saga?. King has developed more than 200 fun titles played by people all around the world every day.

Do you have questions about mental health or how to access mental health services? Visit mentalhealth.gov, a new government website that provides helpful information. We are pleased to partner with the White House and a large number of businesses and organizations to raise awareness of mental health resources.